THE Zambia Public Procurement Authority (ZPPA) has launched a Market Price Index (MPI), which is a list of prices governing the delivery of goods and services.
Speaking during the launch, Friday, ZPPA director general Idah Chella said the objective of the Market Price Index was to ensure efficiency, effectiveness and value for money in the public procurement system.
She said the implementation of the market price index was in line with government’s overall policy direction of procuring at the right price, right quality and timely delivery.
“As ZPPA, we are delighted because this launch means that we are making positive strides towards the attainment of a cost-effective and efficient public procurement system in Zambia. The Market Price Index for the procurement of goods, works and services required by the public sector is an important tool for the attainment of an effective and efficient public procurement system that guarantees value for money. The implementation of the market price index marks a new era in the public procurement reforms and is in line with government’s overall policy direction of procuring at the right price, right quality and timely delivery,” Chella said.
“Pursuant to section 12 (3) of the public procurement act No.8 of 2020, the Zambia Public Procurement Authority is mandated to publish the market price index that we are launching today (Friday). From the onset, allow me to indicate to you that the market price index is a list of prices governing the delivery of goods and services as required with the objective of ensuring efficiency, effectiveness and value for money in the public procurement system.”
Chella said the market price index would prevent the tendency of inflating prices in the procurement of goods, works and services.
“The importance of having a market index in public procurement cannot be over emphasized because it will prevent the tendency to inflate prices in the procurement of goods, works and services required by the public sector. Section 12 of the public procurement act No.8 of 2020, provides that all procuring entities shall: (a) procure standard goods, services and works in accordance with the price index issued by the authority, (b) the authority shall issue a quarterly market price index to be used by the controlling officer, chief executive officer and procuring entity for purposes of an informed price decision, (c) a procuring entity shall, where an item to be procured is not covered in the quarterly market price index, undertake a price reasonableness analysis subject to approval by the authority, as prescribed,” she said.
Chella therefore urged all procuring entities to ensure that they were within the provided prices.
“It is therefore expected that all procuring entities shall conduct procurements within the provided prices and ensure that all processes are cost effective thereby resulting in efficiency and effectiveness of the procurement process. It is for this reason that procuring entities should procure goods, works and services at the prices reflected in the market price index. The launch we are witnessing today (Friday) is a step in the right direction and it is our desire as ZPPA to have all the public institutions adhere to this publication and ensure that all procurements are conducted within the guiding principles which include: (a) procuring goods, works and services at the right price, (b) goods, works and services shall be of the right quality, (c) all that is procured should be delivered on time,” she said.
“As a regulator of public procurement, we will ensure that the above principles are adhered to thereby creating a conducive environment for public procurement. I would like to assure the nation that ZPPA will endeavor to do everything within its mandate and ensure that the public procurement business environment is favorable for all involved stakeholders. I wish to appeal to procuring entities and suppliers to always adhere to the provisions of the public procurement act and conduct business ethically as the growth of Zambia’s economy can only be achieved through prudent and efficient use of public resources.”
Chella disclosed that the authority was implementing an electronic governing procurement system which was now mandatory for all procuring entities to use in the procurement of goods, works and services.
“ZPPA is implementing the electronic governing procurement (E-GP) system which is now mandatory for all PE’s to use in the procurement of goods, works and services. All PE’s and suppliers must familiarize themselves with the E-GP system,” said Chella.